The bill amends Section 44-5-11.10 of the General Laws in Chapter 44-5, titled "Levy and Assessment of Local Taxes," specifically for the city of East Providence. It introduces a new real estate tax classification system with four defined classes of property. The bill allows East Providence to adopt a tax classification plan by ordinance, with the limitation that the tax rate for Class 2 property cannot exceed 200% of the rate for Class 1 property. Additionally, it specifies that beginning with the assessment date of December 31, 2022, any tax rate changes from one year to the next must be applied equally across all classes, except in years when a comprehensive or statistical revaluation is completed.

The bill also outlines the four classes of property: Class 1 includes residential real estate with up to three dwelling units, open space land, and dwellings on leased land, including mobile homes, with a provision for a homestead exemption. Class 2 encompasses commercial and industrial real estate, properties with partial commercial use, and residential real estate with more than three dwelling units. Class 3 includes all ratable tangible personal property, excluding inventory taxed under a different section. Class 4 consists of motor vehicles and trailers subject to excise tax. The bill removes language that previously required the effective rate for property qualifying for a homestead exemption in Class 1 to be considered the standard rate for determining the maximum rate applicable to another class. The act would take effect upon passage.

Statutes affected:
5605  SUB A: 44-5-11.10
5605: 44-5-11.10